The Public Works Association of the State is sounding an alarm. A shortage of skilled workers, little generational turnover, and rising prices for smuggled goods threaten to slow an industry just beginning to recover after years of paralysis. European funds are flowing to the Generalitat, City Councils, and City Halls, but delivery matters as much as money.
Billions in potential investment could be left on the table if firms lack the staff to execute projects. A report from the Public Works Federation (FOPA) estimates that as many as 15,000 workers are needed to carry out planned initiatives, and it calls for urgent government action. Javier Gisbert, President of FOPA, advocates rapid measures such as easing visa processes to recruit foreign labor and a midterm overhaul of vocational education to grant young people relevant qualifications within six months so they can contribute to ongoing works. The sector already feels the strain as the pool of available workers shrinks dramatically. Data show that about 80% of industry workers are over 40, and younger generations are steering away from construction.
Heatwave: Work begins at 6 am, stops for a drink every hour and ends at 2 pm.
Javier Gisbert warns that the situation is grave and tied to rising material costs. He notes that only about 30% of projected budgets and tenders are currently accessible. Funding exists, and the Generalitat is removing many projects from schools through the Edificant Plan, but the industry is overwhelmed, understaffed, and the workload remains heavy. Gisbert explains that work is still viable, thanks in part to the use of pre-made materials, but the data are stark: in 2007, Spain counted 345,000 workers under 25; by 2021 that figure had fallen to around 50,000, per INE statistics.
Spanish men and women often do not choose construction work. There is room for all profiles, and while foreign labor has long played a role, the current climate makes sourcing even more challenging. Gisbert recalls a period when many Polish workers were recruited, yet those workers are less available now as conditions in Poland have improved.
In midterm projects, where work might be lost or handed to out-of-province firms, the Edificant plan’s school and institute construction projects take center stage if Alicante companies cannot find enough personnel. Proposals include expanding central conferences in Elche and the port of Alicante, the Benidorm arena, the Marina Baixa hospital, and even participation in the Sagunto battery factory megaproject.
An investment of 750 million euros is required to prevent the roads from collapsing.
The severe crisis that hit the sector in 2007 pushed many workers to retrain in other fields, such as hospitality. Some retired or unemployed foreigners returned home. As a result, the industry today struggles to find qualified professionals for tasks like facade erection, drywall, welding, plumbing, and electrical work.
Construction companies give up 20 public works in the province with an investment of 30 million
Meanwhile, companies face rising energy costs and material prices. Electricity surged by 178%, iron and steel by 50%, ceramics by 40%, copper by 20%, wood by 17%, and aluminum by 55%. The National Confederation of Construction estimates price increases around 30%, and many blame a lack of decisive government action on reforming public project pricing.
The government approved two decrees allowing for the review of public contracts. Yet, the interpretation offered by the Ministry of Finance suggests that roughly 90 to 95% of ongoing work cannot apply price revisions. Only railway and hydraulic infrastructures, highways, and some industrial buildings have marginal options for adjustment.
One of the most contested points of Royal Decree Act 6/2022 is clarifying when awards can be revisited. The Ministry of Finance indicated that works must be processed within the calendar year 2021 and finalized after the publication of the standard. The ambiguity has caused friction among project managers and investors alike.
This process has sparked controversy and provoked private sector debates. It does not cover all infrastructures started after the beginning of 2021 or completed before the decree, and contracts with execution periods under 15 months are common. In 202, 6,679 works were tendered, of which 5,307 lasted less than 12 months.
Industry representatives argue that priority should be given to contracts facing delays and those in which effort has already been invested. They believe the current regulations have amplified delays, caused project abandonment, and pushed many smaller regional construction firms to the brink. There is also concern about the Administration’s silence when firms had to file requests to verify revisions and received no response, further stalling progress.